T

he Jakarta administration is planning to relocate street vendors from 23 locations across the capital with the help of the city’s companies and their corporate social responsibility (CSR) programs.

Ratnaningsih, head of the city’s Cooperatives and Small and Medium Enterprises Agency, said on Sunday that her office would invite companies — both private and state-owned — to take part in the project.

“We will offer programs and the companies can choose to help implement them,” Ratnaningsih said.

The agency chief said there were already a number of companies expressing interest in contributing to the plan.

“We’re still studying the proposals, evaluating the appropriate programs and how each company can help,” Ratnaningsih said.

One of the earliest companies taking part in the project was the city-owned Bank DKI. The agency signed an agreement with the bank to provide soft loans for the street vendors.

Bank DKI has planned to distribute a total of Rp 1.5 trillion (US$155 billion) of credit to the small enterprises. “We are also working to cooperate with state traditional market operator PD Pasar Jaya in the street vendor project,” Bank DKI director Eko Budiwiyono said.

Eko said street vendors were resilient toward any changes in the economy. “SME [small and medium enterprises] growth is also an indicator of the people’s economic strength and productivity,” he said.

Relocating street vendors has become a top priority of Jakarta Governor Joko “Jokowi” Widodo. He plans to gradually relocate street vendors to traditional markets.

Deputy Governor Basuki “Ahok” Tjahaja Purnama said that street vendors often caused congestion and were an eyesore in the capital. Through relocation, the administration expects to make Jakarta a more comfortable place.

In the first phase of the administration’s plan, 15,000 out of an estimated 300,000 street vendors in the capital will be moved to vacant kiosks in traditional markets managed by PD Pasar Jaya.

Pasar Jaya has provided 3,000 stalls at four traditional markets.

This is not the first time the Jakarta administration has teamed up with businesses to help finance its programs. The administration previously announced that it would involve seven companies in a program to revamp the city’s slums. The companies are expected to take part in the construction of public spaces, health facilities, the renovation of public bathing, washing and toilet facilities and other supporting
public facilities.

As a part of preparation for the relocation project, Jokowi has sought legal advice from the Indonesian Legal Aid Institute Foundation (YLBHI) to discuss the legal aspects of his plans.

Jokowi met with YLBHI founder Adnan Buyung Nasution on Friday, telling him that his administration needed to address the legal issues associated with its programs.

The governor asked YLBHI to give advice on the relocation project with a focus on vendor rights. “It has always been our concern to give street vendors and poor people proper legal protection,” Jokowi said.

The city and the legal institute plan to meet further over the relocation plan.

Besides street vendor management, Jokowi’s priority programs also include the Jakarta Health Card for universal healthcare, the Jakarta Smart Card (cash assistance) for underprivileged students, slum and kampung revitalization projects and minibus grants for operators.

Jokowi has proposed to spend a total of Rp 46.86 trillion in the 2013 budget.